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Most people using credit "wisely"

The majority of UK consumers are able to handle credit wisely when using credit and store cards, the Consumer Credit Counselling Service (CCCS) has said.

According to the organisation, credit card users must pay off more than the minimum amount each month to avoid getting into difficulty, despite the fact the Consumer Credit Act has now achieved greater transparency on card rates.

CCCS estimates that around 50 per cent of people pay off their balance in full every month and while this may not be possible for everyone, people should avoid using credit cards if they find themselves making the minimum payment each month.

"It's better for you …to clear the balances before you go on using the card," advised CCCS spokesperson Frances Walker.

"Just to pay the minimum amount, which is typically only about two per cent …That's the main thing that leads people into debt," she added.

Payments association Apacs made a similar statement recently, saying that consumers are showing greater "responsibility" when using credit cards and often shopping around for the card most suited to their needs.

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01/06/2007 16:49:50

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